In the UK, most unsecured debts can be chased for up to six years from the date of the last acknowledgement or payment. After this six-year period, debts generally become statute barred, meaning creditors lose the legal right to take court action to recover the debt, though they may still contact the debtor to ask for payment. For secured debts such as mortgage shortfalls, the limitation period can be up to twelve years for the capital amount and six years for interest. Debts owed to HM Revenue & Customs (including income tax, VAT, and capital gains tax) can be chased indefinitely. County Court Judgments (CCJs) can also be enforced indefinitely unless more than six years have passed without enforcement, at which point court permission may be required to take action.
Key Points:
- Unsecured debts (credit cards, personal loans, utility bills) can be chased for 6 years.
- Secured debts (e.g., mortgage shortfalls) have a limitation period of 12 years for principal and 6 years for interest.
- HMRC debts have no limitation period and can be chased indefinitely.
- CCJs can be enforced indefinitely, with some conditions after 6 years.
- If a debt is statute barred, creditors cannot legally enforce it through courts but may still ask for payment.
If a debt is statute barred, the debtor can inform the creditor to stop contact or report harassment to the Financial Ombudsman Service. However, one should still respond to any court communications as proceedings can still go ahead if the creditor proves the debt is not statute barred.
